Nifty, Sensex Rise On Positive GDP Data, Optimism Surrounding India-China-Russia Meetings At SCO

After three straight days in the red, the markets are finally bouncing back.

At 11:33 am, the Sensex was up 338 points at 80,147.82 and the Nifty gained 113 points to 24,540.60. Small-cap and mid-cap indices rose around 1 per cent, while IT stocks led the rally.

Why is the stock market up today?

Here are the main reasons behind the uptrend:

Strong GDP Numbers Surprise On the Upside

India’s economy grew 7.8 percent in Q1 FY26 (April–June 2025), the fastest pace in five quarters. This beat the RBI’s projection of 6.5 percent and economists’ estimates of 6.6 percent. The growth was also higher than 7.4 percent in the previous quarter and 6.5 percent a year ago.

Optimism From Modi’s SCO Engagements

Prime Minister Narendra Modi’s meetings with Xi Jinping and Vladimir Putin at the SCO Summit in Tianjin are being closely watched by the market.

With the backdrop of US tariffs on Indian goods being hiked to 50 percent, any sign of easing India-China tensions is viewed positively. Stronger ties with major economies give markets hope of geopolitical stability.

Relief From US Court Ruling on Tariffs

A US appeals court last week ruled most of Donald Trump’s tariffs illegal, though they remain in place until October 14 while the administration appeals.

Expectations From GST Council Meeting

The upcoming GST Council meeting on September 3-4 is also fueling optimism. Chaired by Finance Minister Nirmala Sitharaman, the council may discuss a simplified two-rate structure of 5% and 18%, which could benefit multiple sectors and boost consumption.

Opening Bell

The Sensex opened at 79,828.99, up from the previous close of 79,809.65, while the Nifty started at 24,432.70, slightly above its prior close of 24,426.85.
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